Fred Wilson venture capitalist and Co-Founder Union Square Ventures

Once the user base supports a long-term sustainable business (stage 2), the final “building the business” stage begins, i.e., building a management team including leaders for engineering, product, customer support, finance, marketing, sales, business development and HR (human resources).

“Founders should think of the business as [the ultimate product being built] because from the company can come [additional products and initiatives]. The company, if built correctly [with strong founder commitment], will be more important than any single product it can create”.

Wilson recommends that the founder /CEO have “a partner to help [] build the company” like a senior, experienced HR leader or “a strong number two, a President or COO.”

“[The] people side of the business is harder and way more complicated than building a product is. [Culture], values and a commitment to creating a fantastic workplace [must] come from the top [and are everything]. [] [If] there is a meaningful culture that the entire team buys into, the team will stick together [and surmount challenges].

Fred Wilson venture capitalist and Co-Founder Union Square Ventures

Wilson discusses sustainability within the context of “[] short term profit maximization vs. long term business health []. If you want to stay in business forever, you have to focus on the long term [] [with] a business model that [ensures customer trust to keep them returning].

[][Wilson believe[s] business is about making a profit that sustains the business and enriches the owners but is not maximized in any period (month, quarter, year). [] [The] goal of a business is sustainability so that all the stakeholders (customers, employees, owners, suppliers, etc.) can rely on [it][] long term.”

When considering investments, entrepreneurs should employ survival instincts to ensure future survival. “[][When considering whether] to disrupt their own business [] the [] choice is [not short term profit maximization but] [] survivability” even if it likely results in lower future profits.

“[] When you construct your business model and create the [business culture], emphasize sustainability over profit maximization in everything you create and do. [] Profits are the essence of survivability. [] But just because you need to make a profit doesn't mean you need to maximize it. Balancing the need for a profit with [] sustain[ing] the business is the art of what [the business leader must do to win.]” Fred Wilson, How To Be In Business Forever: A Lesson In Sustainability, Oct. 1, 2012; http://www.avc.com/a_vc/2012/10/how-to-be-in-business-forever-a-lesson-in-sustainability.html

Fred Wilson venture capitalist and Co-Founder Union Square Ventures

Wilson believes the concept of sustainability needs greater consideration today in business as “[] the focus on performance and efficiency often comes at the cost of sustainability.

[] sustainability is all about figuring out how to be in business forever. It is about [:] [win/win] business models that [] lead to happy long term customer and supplier relationships [;] [] avoiding the temptation to overreach [] [and] maximize near term profits at the expense of long term health [;] [] adapting [] to changing market dynamics [;] [] building a team and a culture that can survive the loss of the leader and keep going[;] [and] [] many more things like this.” Fred Wilson, Sustainability, Nov. 21, 2011 http://www.avc.com/a_vc/2011/11/sustainability.html